Page 4 - GLNG Week 13

GLNG COMMENTARY GLNG
Pavilion calls for industry standard on GHG emissions
Singapore’s Pavilion Energy is asking potential suppliers to work on developing an industry standard for greenhouse gas emissions from LNG
PERFORMANCE
WHAT:
Pavilion wants the industry to develop a standard for GHG emissions from LNG.
WHY:
Decarbonisation is increasingly in focus for the energy sector.
WHAT NEXT:
The COVID-19 pandemic may undermine some green initiatives in the shorter term.
THE energy transition had increasingly been in focus before the coronavirus (COVID-19) pan- demic overshadowed most other news. There are now concerns that some green initiatives being rolled out by energy sector players could be undermined or sidelined because of the pan- demic, at least in the short term. However, some companies are keen to emphasise that decar- bonisation remains a priority for them. Among these is Singapore’s Pavilion Energy, one of the two companies approved to import LNG into the city-state.
On April 2, it was reported that Pavilion was asking potential suppliers to help develop an industry standard for total greenhouse gas (GHG) emissions from LNG. The company, which is owned by sovereign wealth fund Temasek Holdings, is calling for such a standard with an eye to the medium term, as it seeks new LNG deliveries from 2023.
Cleaning up
LNG is considered to be a cleaner fuel than coal or oil – and indeed it has been touted as a marine fuel for this reason following the introduction of International Maritime Organisation (IMO) 2020 rules limiting sulphur content in bunker fuel. However, there is no accepted industry standard for measuring the emissions that result
from the production and transportation of LNG. This is perhaps unsurprising, given how many countries are still relatively new to LNG trading, and standards are anticipated to evolve given the recent proliferation of the super-chilled fuel globally. This week it emerged that Pavilion is hoping to promote this evolution.
“We believe that the attractiveness of nat- ural gas as a transition fuel must be reinforced by a better understanding and then reduction of its carbon footprint,” Pavilion’s group CEO, Frederic Barnaud, told Reuters in an emailed statement.
Pavilion is asking would-be suppliers to commit to jointly developing and implementing a GHG quantification and reporting method- ology, describing this as a world first. This is a component of a request for proposal (RfP) that the company launched on March 31 for up to 2mn tonnes per year (tpy) of LNG for delivery from 2023 for a period of at least five years. The company is also asking would-be suppliers for their ideas on how to reduce GHG emissions from LNG operations.
The deadline to submit bids for the tender is set for June. Pavilion is aiming for suppliers to complete the methodology and plans for reduc- ing emissions in 2021, ahead of LNG supply beginning in 2023.
Singapore is in the process of establishing itself as an LNG hub.
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w w w . N E W S B A S E . c o m Week 13 02•April•2020